You're right of course as a Supermini sized Subaru couldn't compete price-wise if equipped with AWD and a more expensive to build boxer engine. It would likely have to be a re-badged Toyota. Can't you just hear the howls of "That'll Never Happen"? But it could happen if SOA decides to tear down the Temple of AWD.

Guy

That is exactly what Subaru is doing in Europe and Japan, a re-badged Toyota Verso is available as Subaru Trezia.